California hospital looks to secure $40M loan to stave off closure

El Centro (Calif.) Regional Medical Center is applying for a $40 million loan from the state of California’s newly created Distressed Hospital Loan Program as it looks to stay open, inewsource reported July 25.

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So far, 16 facilities have applied for the loan program. The state has $300 million available for loans, but the hospitals have requested more than $385 million. 

El Centro revealed an operating income of $17.8 million under budget for the fiscal year ending on March 31. Earlier this year, the hospital received a $5 million loan from the state.

The state will make lending decisions in August.

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